When Netflix started out, one of their biggest challenges was explaining to people how it works. They spent alot of marketing dollars on that, since it's kinda more complicated than going to a videostore to rent something. They relied on word of mouth, because a) it's free, and b) customers are better at explaining how it works to their friends and family.
Well, Rags thinks it will be their downfall. Now that Netflix has educated the public, Blockbuster Online doesn't have to spend any money explaining how it works to their customers. They can emphasize the in-store coupons, which is something Netflix can't compete with. All they have to say is "it's like Netflix, only from Blockbuster" and "you get four free rentals per month for $18." So Netflix spends all this money on marketing their product, and Blockbuster Online reaps the rewards.
Via the un TechBlog
I know people who refuse to go to Blockbuster stores and one of the appeals of netflix was that it wasn't blockbuster. Sure BB is piggybacking off netflix somewhat but they were not the pioneers and I think consumers often have a more trustworthy perception of the "first" of something. I am so glad I haven;t stepped into a video store in almost 4 years that even the occasional problems i have with the red envelope people is worth it.
ReplyDeleteI was one of those people that hated going into a blockbuster store and when I heard about netflix I immediately signed up. But then, when I heard about FREE COUPONS suddenly, going into the store to get something for free was not so bad after all and I switched back to blockbuster. Now I get the movies I want delivered by BB online and I go into the BB store and let the kids pick out whatever they wwant from "free" Somehow, its not so bad going to the actual store and dealing with it when you are just using the free coupon for the kid's videos. The real problme for both netflix and blockbuster is the continuing lack of ggod movies.
ReplyDeleteBecky, Thanks for starting a discussion based on my post. I enjoyed the comments on your post and on my post. You have a very good blog going on here, concentrating on one topic and providing value to your readers.
ReplyDeleteRead more about my ideas in my Blog
What does everyone, here, think of Netflix now...are you being THROTTLED?
ReplyDeletePlease let me know if Blockbuster is just as bad...throttling!
Many thanks...a sad Netflix customer...or a New Blockbuster customer, maybe!
???
See Yahoo news...Popular section for the update on Netflix THROTTLING.
ReplyDelete<: -(